Get Rid of Your Old Electronics Safely

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Recycling is an important part of our daily lives.  In fact, it’s the law, and there is a list of items that are designated for recycling only in CT and may not be placed in the garbage.  There are many reasons, but among the biggest is the fact that landfills are filling up and could be gone within the next two decades.  There are also environmental hazards associated with landfills when toxic chemicals leak into the soil and air when items aren’t disposed of properly.

Using recycled materials avoids environmental damage from mining, drilling, and harvesting trees. E-recycling, in particular, has become increasingly important – and a major problem.  Often, as people replace old electronics and simply throw their old ones away.  In 2019, the U.S. created almost 7 tons of e-waste (that’s 46 pounds per person), but recycled a mere 15%.  The value of the raw materials in that e-waste is about $7.5 billion.

According to the EPA, recycling 1 million laptops saves enough energy to power more than 3,600 homes for a year.  Recycling also creates jobs.  It’s estimated that, for every landfill job, there are 35 jobs in recycling processing and recycling-based manufacturing.  So, the more we recycle, the more jobs we can create.

One of the problems is people don’t always know where or how to recycle their old electronics.

Every year, as part of its ongoing commitment to the community, The Milford Bank promotes recycling with its Shred & Recycle Days.  The event gives residents an opportunity to easily and safely discard their old e-waste and documents.

The next Shred & Recycle Day is coming soon, from 9:00am to noon (or until the trucks are filled) on Saturday, May 8, 2021, at The Milford Bank location at 295 Boston Post Rd, Milford.

Setting Your High School Senior Up for Financial Success

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By Tina Mason

Now that we’re in the second semester of the school year, the college applications have been submitted and high school seniors are waiting anxiously to receive a response.  Soon, they’ll take another step on the the path to their future and before you know it, parents will be be packing up cars to take them to college.

During the past four years, seniors have focused on school work and probably some extracurricular activities – sports, music, drama, or others – to prepare for the next stage of their life journeys.  Most likely, worrying about money hasn’t been a huge priority, which means you probably need to make it one now.  You don’t want to send your soon-to-be college freshman off to school without a solid financial understanding because, much like the college decision itself, understanding financial basics will have a long-term impact.

Here are a few things to keep in mind that you may want to talk about or do with your senior. (If you don’t have a senior, starting when they’re younger certainly doesn’t hurt.  If they’re old enough to have money, they’re old enough to understand banking.)

Savings and Checking Accounts

If you haven’t already opened savings or checking accounts in your child’s name, this is a good time to do it.  Your child will want access to funds and you want them to build financial awareness.  You can always add yourself to the account so you can stay involved with finances to whatever degree makes you comfortable.  Check with your local bank about rates, fees, and other benefits to determine which accounts are best for you.  That includes finding out about ATM fees.  Some banks charge high fees for using other ATMs, while others don’t.

Credit Cards

If you haven’t already, it’s also not a bad idea to open a credit card for your child to start building a credit history.  Make sure you explain how and when credit cards are to be used – and set very specific guidelines if you are paying the bills for now.  Regardless of who is managing payments, be sure to talk about how late and missed payments, balances, and other variables impact credit scores.  You may also want to warn them that college students tend to be heavily targeted with credit card offers claiming to offer unique or exclusive benefits.  Make sure they understand that, while credit cards can be valuable financial tools, they also carry risk if not managed properly, leading to debt.

Emergency Funds

While your child may not be financially independent, going off to college and living away from home does mean unexpected situations can arise.  This is a great time to help young adults understand the value of an emergency fund and you might even want to start one for them.  If they are working during school, adding just a few dollars from each paycheck, or they could dedicate a portion of birthday or holiday gifts to their funds.  It will help them learn at an early age that saving doesn’t have to be difficult, and they’ll have an emergency fund to fall back on if needed.

Budgeting

Budgeting and saving go hand in hand, so this is also a great time to make sure your children – even if they’re not yet heading off to college – about budgeting.  Most students have very limited sources of income.  The good thing is they also don’t have the same level of expenses they will have when they graduate and head off into the working world.  Teaching them to budget appropriately today will build a foundation for their financial stability in the future.

Privacy and Security

Your children have grown up in a digital world and cyber security is probably not a new topic for them.  As they enter the world of banking, it’s a good idea to highlight the need to keep all financial information secure and private.  They should never share their PINs or credit card numbers with anyone, for instance, even if they are doing it with the best of intentions, such as trying to help a friend in need.  There are many digital banking tools that make managing money convenient, but make sure you talk about appropriate password usage, two-factor authentication, which P2P apps are safe to use.

It’s never too early to start teaching children about banking and finances.  But, as you get ready to send yours off to college for the first time, they will be exposed to a new level of freedom.  Making sure they have a solid financial understanding is important and can help keep them from getting into risky financial situations and high debt.

If you have questions about which accounts are best suited for your children, contact your local bank’s staff for advice and information.

Why Mutual Banks Make Sense

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By Jorge Santiago

Mutual banks have been around since the early 1800s.  There are currently about 470 in business across the country and nearly all of them are also classified by the FDIC as community banks.  They were initially created to provide savings opportunities to the working class, something they couldn’t easily get from commercial banks that focused on business customers.  Mutual banks offered individuals a safe place to deposit funds and earn interest, with a tradition of providing quality service to their customers.  Those values remain core to mutual banks today, which lead to several benefits that are passed on to customers.

Corporate Structure

The basic idea behind mutual banks is they are not controlled by stockholders or other direct owners.  Rather, their customers – the depositors that bank with them – are considered mutual owners.  As a result, mutual banks don’t make decisions based on shareholder interests, but focus on how they can deliver maximum value to their customers and support the communities they serve.

Customer Security

Nearly all mutual banks – like The Milford Bank – are insured by the FDIC, and on average, mutual banks have a Tier 1 capital ratio (an indicator of capital security) well above the minimum level and are considered “well capitalized” by the FDIC.  In addition, mutual banks are traditionally conservative when it comes to investments and spending, looking for safe opportunities and avoiding high-risk investments.  It’s one of the reasons mutual banks were almost the only banks that successfully navigated the Great Depression and why they continue to provide a safe banking option today.

Customer Service

Mutual banks have a longstanding reputation for quality service that stems from their focus on depositor value rather than corporate ownership.  Because customers are viewed as owners, serving their needs and delivering a high level of personalized service is their top priority – including a broad service portfolio, convenience, local access, and banking expertise.

Product Breadth

Today, mutual banks offer most of the same services private customers can get from larger commercial banks.  They are investing in digital banking technologies to make banking easier and more convenient, including tools to encourage saving.  They have knowledgeable local staff ready to provide valuable banking information and advice to help customers make responsible financial decisions.

Commitment to Community

Mutual banks are localized, which means they have a vested interest in their local communities.  Not only do their employees live and work in those communities, but so do their customers.  As a result, mutual banks tend to be very active in their communities.  Many offer special events in their towns – like The Milford Bank’s annual Shred & Recycle Days and the Milford Moves 5k – and regularly support local organizations and businesses through a number of initiatives.  Mutual banks espouse community values that reflect their dedication to their customers.  The Milford Bank, for instance, supports more than 100 local organizations throughout the year with not only financial support, but also time dedicated by its team to help these community groups.

When deciding where to put your money for safekeeping, you have options.  By nature, mutual banks can offer benefits that many larger corporate financial institutions cannot.  If you want to know exactly how you local mutual bank can support your banking needs, give them a call or go visit one of their offices for some firsthand detail.  Ultimately, the most important factor is that your money is safe and you have access to the services and expertise you need, when you need it.  As a client, that’s the commitment you’ll get from mutual banks.

10 Tips for Safe Online Banking

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It’s not surprising to see digital banking continue to grow, considering nearly everything else we do is accessible online.  Over the past several years, online and mobile banking has grown as the primary banking method by almost 25%, according to the FDIC.  It’s not hard to imagine that growth continuing this year, especially as the pandemic closed many branches temporarily and people generally trying to avoid risk.  That’s not to say people aren’t visiting branches – they are.  In fact, 80% of households that used digital banking as their primary banking resource still visit branches.  But, the growth is a clear indicator that the convenience of online banking is real, and with banks providing many of their services online and through mobile apps, customers are taking advantage.

Of course, as with other online activities, online banking comes with risks if you’re not careful.  Banks take security seriously and ensure they have the best security measures in place to protect your accounts.  But, there are two sides to every transaction and, if you’re not practicing safe online banking habits, you could be exposing your information to hackers.

Here are a few tips to help you keep you digital banking information secure.

No sharing – Your personal and banking information is yours; keep it that way.  If you get a call or email from someone asking for sensitive information, it’s very likely a scam.  Even if you think there’s a chance it’s a legitimate request, hang up (or don’t respond to the email).  Look up the company’s phone number and call them to confirm.  Remember that your bank will never call asking you for your card numbers, security codes, PIN numbers, or other sensitive information.

WiFi security – Make sure you have followed best practices for home WiFi, including using a strong, unique password.  It’s a good idea to leave that network for you immediate family’s use.  Most modern WiFi routers allow you to easily set up a separate guest network for others to use (make sure to use a different password for the guest network).

Public WiFi – Quite simply, don’t do it.  There’s too much risk and limited security on most public networks.  They are meant to enable access to the internet, but they are typically not safe for financial transactions.  If you have access to a VPN, use that or your mobile network if you have to make banking transactions before your get home.

Passwords – Just as you do for your WiFi, use strong, unique passwords for your online and mobile banking apps.  Not all sites use the same high levels of security as banks.  Using unique passwords means that, even if one password is stolen from a site with weaker security, your banking information will not be exposed.  Check our post on creating strong passwords to help.

Sign out – Remember to sign out of your online banking accounts when done to avoid exposing your accounts in the event your devices are compromised.

P2P payments – There are many great tools for easily sending and receiving money from friends or family members.  It’s a smart habit to limit your P2P activity to people you know and trust explicitly.  If someone asks you to pay for a purchase using a P2P product, you should think twice about it.  These options are great for quickly sending money to someone, such as when splitting a bill, but they don’t offer you recourse for recovering lost funds.  On the other hand, other payment options, like credit cards and digital payment platforms like PayPal, Google Pay, and others, offer fraud protection (check before you use them to make sure you understand what is covered and what isn’t).

Mobile security – Even if you’ve secured your home devices, don’t forget your smartphones.  Treat your mobile devices just as you would a laptop or desktop with good security software.  Many security solutions available for consumer use package mobile security apps in their solutions.  If you subscribe to security software, check to see if it comes with a mobile solution.  As with your home devices, always make sure your security software is current.  Consider allowing your security software to update automatically to make sure you always have the latest protection.

Firewalls – Make sure you have an active firewall for your broadband connection to reduce risk.  Your operating system or security software should include a firewall option that you can enable.

Contact info – Make sure you update your bank and your mobile accounts if you get new contact information.  It will help your bank communicate with you and will make sure you continue receiving important information, including your account activity alerts.

Monitor your accounts – Banks have good fraud detection in place to protect your accounts, but cyber criminals are also good at what they do.  Checking your accounts regularly can double down on your bank’s efforts and spot any questionable transactions.  It’s easy to do with your online portal or mobile app and won’t take you much more time than checking email.  You can also set up automated alerts via text or email to let you know each time a transaction is made.  Alerts It will help not only help you manage your spending, but will alert you immediately of any suspicious account activity so you can contact your bank and take appropriate steps.

Online banking has become extremely convenient.  With all the digital tools available for many of your banking needs, you will rarely have to physically visit a branch if you don’t want to or are just not able to.   But, you need to make sure you’re taking precautions and following best practices for online activity to avoid putting your financial information at risk.

7 Things You Think You Know About Credit Scores, But Don’t

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By William LoCasto

When was the last time you checked you credit report?  If you’re like many people, it’s probably not frequently enough.  The good news is you can do it at least three times a year at no cost, because the three major credit reporting agencies are required to provide one free credit report a year.  In addition, your bank may offer additional services for checking you credit.

You credit scores and report will be a factor for so many decisions you make in life.  With many major financial commitments, you credit report is likely to be checked.  When you’re buying a home, your mortgage lender will look closely at your credit report.  The same goes for car loans.  Credit card companies check to determine not only whether they are willing to offer you credit, but also your card limit and interest rate.  Utility and phone companies may also want to check to determine how likely you are to pay your bills, or whether they should require a prepaid plan.  Even prospective employers often check credit reports.

The bottom line is that your credit report will play a role in most major events in your life.  This means it’s in your best interest to check you scores regularly for any anomalies, and so you know if you need to take steps to improve your score.  Checking your score is a great start, but only if you know how they actually work, which isn’t always easy.  For one thing, about a year ago, FICO (the most widely used credit scoring resource used by lenders), updated its scoring system, which could impact your score.

Aside from that, there are a number of common misconceptions about credit scores that could prevent you from improving your credit ratings.

Checking your credit report impacts your score

This is not true.  You can check your own credit score as often as you want without any impact.  However, if you are applying for credit from multiple sources, such as a car dealer, a mortgage lender, and a retail store, those credit checks could slightly dip you score.

Accessing lines of credit doesn’t impact your score

Again, this is not true.  The amount of credit you have used, compared to your available credit, is one of the biggest factors in your credit score.  A lower utilization rate is better for your overall credit.

Income changes your credit score

Yet again, this isn’t true.  Your job and income history has no impact on your credit score.  It is, however, used by lenders to determine how much they are willing to lend you.

Closing credit cards can improve your score

This is also not true.  In fact, if you close a credit card at the wrong time, you might actually lower your score because you’re reducing your available credit, which will increase the percentage of credit you’ve used.  That’s not to say you should never close credit accounts – there are often very good reasons to do so, but be aware it could impact your score.

Marriage changes your credit score

You guessed it, not true.  Credit scores aren’t like taxes; they aren’t combined into households.  Your credit score is yours alone.  Lenders, though, may ask for information about your spouse to determine your loan amount and interest rate.

You need to have a perfect score

Also false.  While it’s possible to have a perfect credit score, there’s isn’t a benefit.  Once you have reached high credit worthiness, making it perfect won’t create any noticeable benefits, other than knowing you have a perfect score.  That’s not to say you shouldn’t strive for perfection, but you also shouldn’t worry about not reaching it with your credit score – it won’t hurt you.

Poor credit is forever

This may be the best misconception of all.  Unless you have perfect credit, you can always improve your score over time.  The key is to not only understand what goes into your credit score, but to start following smart financial habits, including creating and sticking to budgets, paying off existing debt, and cutting out unnecessary spending.

There are many other questions that don’t have simple yes or no answers when it comes to credit scores.  For up-to-date information on what impacts your credit score and what doesn’t, or for advice on how you can start rebuilding your credit, talk to your bank’s experts.  Remember, you credit score will impact you for your entire life, but just because you don’t have a high score today doesn’t mean you can’t improve it.